the consumption level of all households who are perceived to be richer, on household savings and consumption. When …

uncertainty on households' consumption-savings decision. Applying a structural demand model to German survey data, we estimate the … uncompensated interest rate elasticity for savings, in line with the literature, to around zero. Accordingly, any policy …-induced variation of net returns to savings is expected to have no significant effects on the level of savings. Moreover, we find …

to deviations from outcomes that would be desirable from a normative point of view. The savings rate is considerably …